30 June 2014 Investa Office Fund. Property Portfolio

Transcription

1 30 June 2014 Investa Office Fund Property Portfolio 14

2 What s inside IOF Property Portfolio 04 Portfolio Overview 04 Portfolio 10 Sydney 10 Melbourne 28 Brisbane 30 Perth 36 Canberra 40 Investa Office Fund (ASX code: IOF) is an ASX-listed Real Estate Investment Trust (A-REIT) and is included in the S&P/ASX100 Index. IOF is a leading owner of investment grade office buildings and receives rental income from a tenant register comprised predominately of Government and blue chip tenants. IOF has total assets under management of $3.3 billion with 23 investments located in core CBD markets throughout Australia, and one legacy asset in Brussels, Belgium. IOF s focus is on delivering attractive risk-adjusted returns to its unitholders from a portfolio of high quality assets located in the key CBD office markets of Australia. This Property Portfolio is one of three documents that form IOF s FY14 reporting suite. For more information, or to download any of the above documents, visit 30 June 2014 Investa Office Fund Annual Review 30 June 2014 Investa Office Fund Annual Financial Report 30 June 2014 Investa Office Fund Property Portfolio O Connell Street, Sydney

3 3 Our investment strategy IOF s strategy is to deliver attractive risk adjusted returns by investing in high quality assets in Australian CBD office markets where the manager, Investa Office ( Investa ), can enhance returns through active asset management strategies and by repositioning or recycling assets through the market cycle. Investa is an integrated office owner and manager with significant capability and experience in the Australian office sector. Investa has an active asset management approach that focuses on building strong relationships with tenants to ensure high levels of occupancy, while continuously assessing opportunities to add value to its assets. IOF s focus is on delivering attractive riskadjusted returns to its unitholders from a portfolio of high quality assets located in the key CBD office markets of Australia. PORTFOLIO OVERVIEW SYDNEY MELBOURNE BRISBANE PERTH CANBERRA Assets under management $3.3bn 1 Occupancy 92% Weighted average lease expiry 5.0yrs 1. Includes 567 Collins Street, Melbourne at completion

4 4 INVESTA OFFICE FUND PROPERTY PORTFOLIO JUNE 2014 Portfolio overview Australia Throughout the year we successfully delivered on our strategic objectives of improving portfolio quality, driving strong leasing outcomes and prudently managing the balance sheet. Toby Phelps, Fund Manager Key leading economic indicators for office tenant demand have continued to strengthen over the last 12 months and we are now seeing increasing evidence of improving fundamentals converting to increased tenant activity. Tenant demand has rebounded, with Sydney and Melbourne returning to near-trend occupancy growth over the last half of the financial year. This has driven effective rental growth in Sydney and a stabilisation of rents in Melbourne. However market conditions are not equal in all locations, with Brisbane and Perth facing significant challenges as the investment phase of the resources boom continues to wind down. Nonetheless these markets appear to be stabilising as the rate of tenant contraction subsides and we expect gradual improvements in tenant demand over the remainder of the calendar year. Capital markets continue to strengthen across the country, and while yields have firmed, they remain attractive by global standards. This continues to drive interest from both offshore and domestic investors who are increasingly attracted to the risk-adjusted returns offered by office markets. Total lettable area 559,722sqm Tenants 437 Total number of assets 23 NABERS Energy rating 4.2 Star NABERS Water rating 3.7 Star

5 5 PORTFOLIO Portfolio Overview OVERVIEW 2 WA PERTH SYDNEY Deutsche Bank Place, 126 Phillip Street, Sydney 347 Kent Street, Sydney 388 George Street, Sydney Piccadilly Complex 133 Castlereagh Street, Sydney Bond Street, Sydney 151 Clarence Street, Sydney 6 O Connell Street, Sydney Campus MLC, Miller Street, North Sydney 111 Pacific Highway, North Sydney 99 Walker Street, North Sydney NT SA MELBOURNE 5 MELBOURNE 567 Collins Street, Melbourne Telstra Global Headquarters, 242 Exhibition Street, Melbourne 628 Bourke Street, Melbourne 800 Toorak Road, Melbourne Royal Mint Centre, 383 La Trobe Street, Melbourne BRISBANE 140 Creek Street, Brisbane 295 Ann Street, Brisbane 232 Adelaide Street, Brisbane 239 George Street, Brisbane 15 Adelaide Street, Brisbane VIC QLD NSW BRISBANE SYDNEY ACT TAS PERTH 66 St Georges Terrace, Perth Wellington Central, 836 Wellington Street, Perth CANBERRA Times Square, Mort Street, Canberra 5 10 CANBERRA 1 SYDNEY MELBOURNE BRISBANE PERTH CANBERRA

6 6 INVESTA OFFICE FUND PROPERTY PORTFOLIO JUNE 2014 Portfolio overview 239 George Street,Brisbane Our active approach to asset management has driven $112 million in valuation increases across the portfolio. Toby Phelps, Fund Manager 36% 27% 7% 8% 11% 5% 6% Portfolio grade By value 62% 24% 14% PREMIUM A-GRADE B-GRADE

7 Address IOF portfolio 7 PORTFOLIO OVERVIEW 242 Exhibition Street, Melbourne 66 St Georges Terrace, Perth Geographic diversification 1 REGION A$m By value 1 Sydney 1, % 5% 2% 2% 15% 53% Melbourne Brisbane Perth Canberra 79.0 Europe 79.6 Total 3,272.7 With our ongoing focus on portfolio transformation, $800 million of transactions were completed during the period, including the sale of the legacy investment in the Dutch Office Fund and the acquisition of three Sydney assets, positioning the portfolio for stronger growth moving forward. SYDNEY MELBOURNE BRISBANE PERTH CANBERRA 1. Includes 567 Collins Street, Melbourne as at completion

8 8 INVESTA OFFICE FUND PROPERTY PORTFOLIO JUNE 2014 Portfolio overview Portfolio Metrics Property NLA (sqm) (A$m) 1 Cap rate (%) WALE (yrs) Occupancy 2013 (%) NPI (A$m) Deutsche Bank Place 126 Phillip Street, Sydney, NSW (25%) 42, Kent Street, Sydney, NSW 26, George Street, Sydney, NSW (5) 38, Piccadilly Complex 133 Castlereagh Street, Sydney, NSW (5) 47, Bond Street, Sydney, NSW (5) 38, Clarence Street, Sydney, NSW 16, n/a O Connell Street, Sydney, NSW 16, Campus MLC Miller Street, North Sydney, NSW 26, Walker Street, North Sydney, NSW 19, Pacific Highway, North Sydney, NSW 18, Collins Street, Melbourne, VIC (5) 54, N/A Telstra Global Headquarters 242 Exhibition Street, Melbourne, VIC (5) 65, Bourke Street, Melbourne, VIC 24, Toorak Road, Melbourne, VIC (5) 41, Royal Mint Centre 383 La Trobe Street, Melbourne, VIC 9, Creek Street, Brisbane, QLD 28, Ann Street, Brisbane, QLD 20, Adelaide Street, Brisbane, QLD 4, George Street, Brisbane, QLD 24, Adelaide Street, Brisbane, QLD 11, St George s Terrace, Perth, WA 11, Wellington Central 836 Wellington Street, Perth, WA Times Square Mort Street, Canberra, ACT 11, , Bastion Tower, Avenue des Artes 31, Total Australia 559, , Total European 31, Total Portfolio 591, , based on IOF s ownership 2. Includes leasing post 30 June 2014 to Coles and Jemena 3. The property at 567 Collins Street, Melbourne is not included in total and is an investment property under construction with an anticipated practical completion date in mid NLA IOF ownership 411,972sqm 5. NLA IOF ownership 15,841sqm 6. NLA IOF ownership 427,813sqm 7. Includes income from Dutch Office Fund prior to sale of investment

9 IOF portfolio 9 > Learn more about the Fund s sustainability achievements in our Annual Review Environmental Performance Metrics Property Emissions intensity (kg.co 2 -e/sqm) Electricity intensity (kwh/sqm) Gas intensity (MJ/sqm) Energy Intensity (kwh/sqm) Water intensity (L/sqm) NABERS Energy rating B (Stars) NABERS Water rating B (Stars) PORTFOLIO OVERVIEW Deutsche Bank Place 126 Phillip Street, Sydney, NSW (25%) Kent Street, Sydney, NSW , George Street, Sydney, NSW (5) Piccadilly Complex 133 Castlereagh Street, Sydney, NSW (5) E E E E E Bond Street, Sydney, NSW (5) , Clarence Street, Sydney, NSW O Connell Street, Sydney, NSW E E E E E Campus MLC Miller Street, North Sydney, NSW Walker Street, North Sydney, NSW E E E E E Pacific Highway, North Sydney, NSW Collins Street, Melbourne, VIC (5) I I I I I I I Telstra Global Headquarters 242 Exhibition Street, Melbourne, VIC (5) Bourke Street, Melbourne, VIC Toorak Road, Melbourne, VIC (5) C C C C C C C Royal Mint Centre 383 La Trobe Street, Melbourne, VIC 140 Creek Street, Brisbane, QLD 295 Ann Street, Brisbane, QLD 232 Adelaide Street, Brisbane, QLD 239 George Street, Brisbane, QLD 15 Adelaide Street, Brisbane, QLD C C C C C D D St George s Terrace, Perth, WA Wellington Central 836 Wellington Street, Perth, WA SYDNEY MELBOURNE BRISBANE PERTH CANBERRA Times Square Mort Street, Canberra, ACT A A A A A A A Total Portfolio Notes: A. Could not be rated due to insufficient occupancy due to building refurbishment B. NABERS ratings are presented for all buildings under ownership Investa Office Fund (IOF) as at 30th June 2014 C. Not reported as management control of the building is assigned to the tenant under the terms of the lease. D. Gas is not used at this site E. Excludes assets not owned/managed for the duration of the reporting period including buildings under construction F. Due to metering constraints aggregated data is collected for this group of assets G. Not reported as recycling service is controlled by tenant assigned management I. Site currently under construction

10 10 Portfolio overview Sydney portfolio Sydney CBD and North Sydney have seen a rebound in tenant demand, and this has resulted in solid rental growth in the last half of the financial year. We expect vacancy rates to continue to fall over the next 12 months due to ongoing demand improvements, a constrained supply outlook, and increasing levels of stock withdrawal for conversion to non-office use. As a result, investment in office buildings is expected to strengthen, supporting further uplifts in value SYDNEY 10 SYDNEY PORTFOLIO 1 Deutsche Bank Place, 126 Phillip Street Kent Street George Street 4 Piccadilly Complex 133 Castlereagh Street Bond Street Clarence Street 7 6 O'Connell Street 8 Campus MLC, Miller Street 9 99 Walker Street Pacific Highway KENT ST 2 CLARENCE ST 6 3 4

11 11 Total lettable area 291,121sqm Weighted average lease expiry 4.5yrs Occupancy 97% $1,725.8m PORTFOLIO OVERVIEW SYDNEY OUTLOOK Expect continued rebound in leasing markets By Income 41% Downward trend in vacancy rates boosted by stock withdrawals 27% Rate of growth to escalate over the course of next year SYDNEY MELBOURNE BRISBANE PERTH CANBERRA 3% 1 8% 5% 6%

12 KENT ST CLARENCE ST 12 INVESTA OFFICE FUND PROPERTY PORTFOLIO JUNE 2014 Deutsche Bank Place, 126 Phillip Street, Sydney NSW With stunning views across Sydney Harbour and the Royal Botanic Gardens, this new-generation building is one of Australia s finest office towers. It features an external services side core providing column-free floor plates of 1,444sqm which are among the largest in Sydney. The 42,246sqm of total NLA boasts a NABERS Energy rating of 4.5-stars, a spectacular entry plaza and a host of tenant amenities. Premium grade office Ownership 25% Year built 2005 Year refurbished N/A Lettable area (sqm) 42,246 Average Floor Plate (sqm) 1,444 Car spaces 82 Acquisition date April 2012 $189.2m Occupancy level 97% WALE 5.2 years Average passing rent (face) $1,110/sqm pa net $10.6m NABERS Energy rating NABERS Water rating Value (25% ownership) $187.5m Date December 2013 Cap rate 6.0 Discount rate 8.0 $17,753/sqm Major tenants Area % of NLA Expiry Allens 12,516sqm 31% June 2019 Deutsche Bank 10,108sqm 25% October 2020 Bank of Queensland 2,888sqm 7% March 2025 O CONNELL ST 41% 34% 3% 8% 4% 9%

13 KENT ST CLARENCE ST Kent Street, Sydney NSW The building is well located in a prominent position in the CBD s western precinct. Enjoying views over Darling Harbour and out to Pyrmont Bay, the building height was extended in 1997 from the original 13 storeys to 20. This increased the total A-grade office accommodation to almost 25,000sqm with an additional 1,590sqm of ground floor retail space. PORTFOLIO OVERVIEW O CONNELL ST 97% A-grade office Ownership 10 Year built 1997 Year refurbished 2005 Lettable area (sqm) 26,261 Average Floor Plate (sqm) 1,240 Car spaces 100 Acquisition date January 1999 $260.0m Occupancy level 10 WALE Average passing rent (face) NABERS Energy rating NABERS Water rating Value 4.8 years $934/sqm pa gross $22.6m $260.0m Date December 2013 Cap rate 7.0 Discount rate 8.5 $9,901/sqm Major tenants Area % of NLA Expiry ANZ 24,808sqm 94% January 2019 Bowery Bar 917sqm 3% May 2030 Ishida & Associates 259sqm 1% January 2019 SYDNEY MELBOURNE BRISBANE PERTH CANBERRA 1% 2%

14 KENT ST CLARENCE ST 14 INVESTA OFFICE FUND PROPERTY PORTFOLIO JUNE George Street, Sydney NSW Situated 50 metres from Pitt Street Mall, this 28 storey property consists of office space with lower level retail space in the heart of the CBD. Located at the intersection of two of Sydney s busiest CBD streets, this property includes a Coles Express on the lower level. Following comprehensive refurbishment in 1998, further progress has recently been made to improve the building s environmental performance to a NABERS Water rating of 4-star. A-grade office Ownership 5 Year built 1973 Year refurbished 1998 & 2009 Lettable area (sqm) 38,743 Average Floor Plate (sqm) 1,270 Car spaces 80 Acquisition date October 2002 $207.6m Occupancy level 10 WALE 4.3 years Average passing rent (face) $614/sqm pa net $13.6m NABERS Energy rating NABERS Water rating Value (5 ownership) $207.5m Date June 2013 Cap rate 6.88% Discount rate 8.75% $10,712/sqm Major tenants Area % of NLA Expiry IAG 35,817sqm 92% October 2018 Coles 1,921sqm 5% October 2018 ANZ 450sqm 1% April % 4%

15 Piccadilly Complex, 133 Castlereagh Street, Sydney 15 Located between Pitt and Castlereagh Streets just 100 metres from Pitt Street Mall, the Piccadilly Complex comprises two office buildings totalling 42,090sqm. Connected by a two level retail mall and serviced by a 229 bay car park, Piccadilly Tower provides high quality A-grade accommodation with column free 1,250sqm floor plates, whilst Piccadilly Court is a B-grade building that appeals to more budget conscious occupiers. PORTFOLIO OVERVIEW LARENCE ST A/B-grade office Ownership 5 Year built 1975, 1991 Year refurbished 2007 Lettable area (sqm) 47,326 Average Floor Plate (sqm) 1,250/750 Car spaces 229 Acquisition date March 2014 $187.3m Occupancy level 93% WALE Average passing rent (face) NABERS Energy rating 1 NABERS Water rating years $576/sqm pa net $3.2m Value (5 ownership) $186.0m Date January 2014 Cap rate 7.1 Discount rate 8.85% $7,860/sqm Major tenants Area % of NLA Expiry Stockland 12,479sqm 26% December 2023 Uniting Church of Australia 7,957sqm 17% July 2019 GHD Services 4,357sqm 9% December 2019 SYDNEY MELBOURNE BRISBANE PERTH CANBERRA 133 CASTLEREAGH 62% 7% 8% 5% 5% 12% 1% 1. NABERS rating as at acquisition

16 16 INVESTA OFFICE FUND PROPERTY PORTFOLIO JUNE Bond Street, Sydney NSW The property consists of two buildings and a ground floor retail plaza: 10 Bond Street with seven levels of office space; and 20 Bond Street offering 31 levels of office space with the upper floors commanding harbour views. Substantial upgrades were completed in 2011 to upgrade the building and cement its position as one of Sydney s premier CBD A-grade buildings that attracts a range of tenants from industries including financial services, legal and recruitment. A-grade office Ownership 5 Year built 1979 Year refurbished 1995, 1999 & 2011 Lettable area (sqm) 38,271 Average Floor Plate (sqm) 950 Car spaces 169 Acquisition date June 1989 $187.4m Occupancy level 10 WALE 4.9 years Average passing rent (face) $696/sqm pa net $8.8m NABERS Energy rating NABERS Water rating Value (5 ownership) $188.0m Date December 2013 Cap rate 6.63% Discount rate 8.5 $9,825/sqm Major tenants Area % of NLA Expiry Fitness First 4,445sqm 12% March 2024 Origin Energy 3,746sqm 1 November 2019 Trust Company 3,444sqm 9% April 2021 O CONNELL ST 46% KENT ST CLARENCE S 14% 16% 3% 1% 14% 2

17 KENT ST CLARENCE ST Clarence Street, Sydney NSW O CONNELL ST 151 Clarence Street is strategically located in the heart of the Sydney CBD and links the traditional core with the western corridor. Major public transport nodes at Wynyard, Town Hall and Martin Place are located nearby with extensive retail and entertainment amenity at Pitt Street Mall and King Street Wharf within walking distance. The current 16,993sqm B-grade building is scheduled to be demolished in March 2016 to make way for a 17 storey, ~22,000sqm building featuring large 1,200-1,700sqm floor plates scheduled for completion in late B-grade office Ownership 10 Year built 1983 Year refurbished 2000 Lettable area (sqm) 16,993 Average Floor Plate (sqm) 1,250 Car spaces 119 Acquisition date November 2002 $83.0m Occupancy level 95% WALE Average passing rent (face) NABERS Energy rating NABERS Water rating 1.4 years $446/sqm pa gross $5.1m Value $83.0m Date June 2014 Cap rate Discount rate N/A N/A $4,884/sqm Major tenants Area % of NLA Expiry Westpac 7,483sqm 46% December 2015 Telstra 3,089sqm 19% February 2016 Officeworks 1,251sqm 8% February 2016 PORTFOLIO OVERVIEW SYDNEY MELBOURNE BRISBANE PERTH CANBERRA 8 5% 15%

18 KENT ST CLARENCE ST 18 INVESTA OFFICE FUND PROPERTY PORTFOLIO JUNE O Connell Street, Sydney The 26 storey office tower holds a prime location in the heart of the Sydney CBD, and features easily subdivisible floorplates of ~600 square metres which appeal to smaller office users attracted to the core location, and affordable average net rents. The 14,602sqm of office space is occupied by over 40 tenants, and the building also has 1,715sqm of retail space and a 108 bay car park. The ground and lower ground floor retail incorporates a high traffic retail walk-through between O Connell Street and Bligh Street. B-grade office Ownership 10 Year built 1970 Year refurbished 1998, 2010 Lettable area (sqm) 16,317 Average Floor Plate (sqm) 600 Car spaces 108 Acquisition date June 2014 $135.0m Occupancy level 89% WALE Average passing rent (face) NABERS Energy rating NABERS Water rating 2.4 years $712/sqm pa gross $0.2m Value $135.0m Date June 2014 Cap rate 7.5 Discount rate 8.5 $8,271/sqm Major tenants Area % of NLA Expiry Iu Seng Cheang & Ida Cheang 922sqm 6% May 2018 Commonwealth of Australia 905sqm 6% June 2018 Hays 630sqm 4% July 2015 O CONNELL ST 6 O CONNELL 11% 11% 19% 26% 16% 18%

19 Miller Street, North Sydney This building was comprehensively refurbished in 2013 following a lease renewal to MLC until The property fronts two main streets and Mount Street Mall in the core North Sydney market. Pedestrians have access via an underpass to Greenwood Plaza, an established presence for shoppers and North Sydney Rail Station. PORTFOLIO OVERVIEW A-grade office Ownership 10 Year built 1957 Year refurbished 2000 & 2013 Lettable area (sqm) 26,905 Average Floor Plate (sqm) 1,880 Car spaces 132 Acquisition date December 1998 $193.5m Occupancy level 10 WALE Average passing rent (face) NABERS Energy rating NABERS Water rating Value 5.7 years $395/sqm pa net $10.9m $193.5m Date June 2014 Cap rate 7.5 Discount rate 9.0 $7,192/sqm Major tenants Area % of NLA Expiry National Australia Bank 25,372sqm 94% September 2020 SYDNEY MELBOURNE BRISBANE PERTH CANBERRA 87% 2% 5% 2% 4% 1%

20 20 INVESTA OFFICE FUND PROPERTY PORTFOLIO JUNE Walker Street, North Sydney NSW Positioned on the corner of Walker and Mount, 99 Walker Street is well located in the heart of North Sydney and offers 21 levels of office space over 16,200sqm. The office floors benefit from excellent natural light, attractively sized floor plates of approximately 800sqm and sweeping views of Sydney Harbour from the upper floors. The building was acquired in July 2013, and since acquisition Investa has leased 8,200sqm to Jemena and Coles, and repositioned the existing food court into a proposed supermarket. A-grade office Ownership 10 Year built 1988 Year refurbished 2007 & 2013 Lettable area (sqm) 19,376 Average Floor Plate (sqm) 800 Car spaces 263 Acquisition date July 2013 $143.0m Occupancy level 1 93% WALE 1 Average passing rent (face) 1 NABERS Energy rating NABERS Water rating 10.4 years $578/sqm net $9.2m Value $143.0m Date June 2014 Cap rate 7.25% Discount rate 9.0 $7,380/sqm Major tenants Area % of NLA Expiry GE Capital Finance 6,268sqm 32% June 2022 Jemena 5,606sqm 29% February 2028 Coles 2,547sqm 13% June % 7% 5% 9% 1% 1. Includes leasing post 30 June 2014 to Coles and Jemena

21 Pacific Highway, North Sydney This 24 storey property has functional 960sqm floor plates and an attractive outlook with good natural light throughout. The property has twice been extensively refurbished to ensure that it continues to present a competitive commercial offering for high quality tenants. PORTFOLIO OVERVIEW A-grade office Ownership 10 Year built 1974 Year refurbished 1993 & 2006 Lettable area (sqm) 18,684 Average Floor Plate (sqm) 960 Car spaces 164 Acquisition date May 2004 $139.8m Occupancy level 92% WALE Average passing rent (face) NABERS Energy rating NABERS Water rating Value 3.4 years $528/sqm pa net $8.5m $139.0m Date December 2013 Cap rate 7.75% Discount rate 9.25% $7,439/sqm Major tenants Area % of NLA Expiry Transfield Services 6,353sqm 34% July 2018 Nextgen 1,211sqm 7% June 2016 Jemena 981sqm 5% July 2015 SYDNEY MELBOURNE BRISBANE PERTH CANBERRA 4 8% 15% 18% 5% 8% 6%

22 22 INVESTA OFFICE FUND PROPERTY PORTFOLIO JUNE 2014 Portfolio overview Melbourne portfolio The Melbourne market has also experienced a return to positive tenant demand during the year; however fundamentals are not yet as advanced as in Sydney due to new supply additions, which have resulted in a slight increase in vacancy during the year. Nonetheless rents have stabilised and we forecast that the outlook for rental growth will improve from here despite further new office developments that will possibly drive a marginal increase in vacancy. Looking ahead the level of supply under construction is beginning to reduce and conditions beyond look to be conducive to rental growth. MELBOURNE MELBOURNE PORTFOLIO Collins Street 2 Telstra Global Headquarters 242 Exhibition Street Bourke Street Toorak Road 1 5 Royal Mint Centre 383 La Trobe Street 4

23 23 Total lettable area 142,293sqm Weighted average lease expiry 7.2yrs Occupancy $604.9m 10 PORTFOLIO OVERVIEW MELBOURNE OUTLOOK Foresee continued improvements in leasing markets By Income Supply additions may result in slight short-term rise in vacancy 78% Rents to increase during SYDNEY MELBOURNE BRISBANE PERTH CANBERRA 2% 2% 13% 4%

24 24 INVESTA OFFICE FUND PROPERTY PORTFOLIO JUNE Collins Street, Melbourne VIC Currently under construction and scheduled for completion in mid-2015, this building will provide 55,000sqm of premium grade office space on Collins Street at the gateway to Docklands. The building will be anchored by Leighton Contractors, Jemena, Corrs Chambers Westgarth and Virgin Active and is targeted to achieve 5-star NABERS and Green Star Ratings. Premium grade office Ownership 5 Year built N/A Year refurbished N/A Lettable area (sqm) 54,676 Average Floor Plate (sqm) 2,000 2,500 Car spaces 162 Acquisition date March 2013 $113.0m Occupancy level 1 73% WALE Average passing rent (face) N/A N/A Target NABERS Energy rating 2 Target NABERS Water rating 2 Value as complete (5 ownership) $250.7m Date June 2014 Cap rate 6.25% Discount rate 8.5 9,156sqm Architect s impression Major tenants Area % of NLA Lease Term Leighton Contractors 12,701sqm 23% 10 yrs Jemena 12,000sqm 22% 13 yrs Corrs Chambers Wesgarth 8,617sqm 16% 12 yrs Vacant space at completion subject to a 4 year rental guarantee 2. Target rating of 5-Star NABERS and Green Star

25 25 Telstra Global Headquarters, 242 Exhibition Street, Melbourne VIC Located in the north-eastern sector of the Melbourne CBD, this A-grade building with 65,914sqm of NLA includes 43 levels of office space most floors with excellent views and a ground floor retail precinct. The building is close to major transport links including Parliament Station, trams and buses. It s also an easy walk to parks, hotels, restaurants, cafés and leading retail areas. PORTFOLIO OVERVIEW A-grade office Ownership 5 Year built 1992 Year refurbished 2010 Lettable area (sqm) 65,914 Average Floor Plate (sqm) 1,470 Car spaces 346 Acquisition date April 2012 $233.8m Occupancy level 10 WALE Average passing rent (face) NABERS Energy rating NABERS Water rating Value (5 ownership) 5.8 years $484/sqm pa net $16.4m $233.8m Date May 2013 Cap rate 6.85% Discount rate 8.75% $7,093/sqm Major tenants Area % of NLA Expiry Telstra 63,946sqm 97% May 2020 SYDNEY MELBOURNE BRISBANE PERTH CANBERRA 98% 1% 1%

26 26 INVESTA OFFICE FUND PROPERTY PORTFOLIO JUNE Toorak Road, Melbourne VIC 800 Toorak Road is a 42,000sqm office building featuring a central atrium, conference centre, extensive staff dining facilities and a gymnasium. The building is 10 leased to Coles with a WALE of 15.5 years following the lease extension during FY14 from 2016 to The resultant valuation uplift of 22% over FY14 also reflects the addition of a 1,200 bay car park currently under construction. B-grade office Ownership 5 Year built 1986 Year refurbished N/A Lettable area (sqm) 41,878 Average Floor Plate (sqm) 6,560 Car spaces 1,236 Acquisition date June 1997 $80.5m Occupancy level 10 WALE 15.5 years Average passing rent (face) $231/sqm pa net $5.7m NABERS Energy rating 1 Not rated NABERS Water rating 1 Not rated Value (5 ownership) $80.5m Date June 2014 Cap rate 7.25% Discount rate 9.0 $3,845/sqm Major tenants Area % of NLA Expiry Coles 41,878sqm 10 December 2029 TOORAK RD TOORAK RD KAIKOURA RD 10 GARDINERS CREEK MARAQUITA GR CRESCENT RD MONASH FREEWAY TOORONGA PARK TOORONGA RD GARDINERS CREEK BURKE ROAD SOUTH RESERVE TOORONGA WEST ST MONASH FREEWAY 1. Data not reported as management control for the building is assigned to the tenant under the terms of the lease.

27 27 Royal Mint Centre, 383 La Trobe Street, Melbourne VIC The Royal Mint Centre offers dual benefits of being positioned in the legal precinct and on one of only two streets leading to Docklands. Modern office space, secure parking and controlled access all add to this property s appeal. 383 La Trobe offers four levels of office accommodation and basement car parking for over 500 vehicles. PORTFOLIO OVERVIEW B-grade office Ownership 10 Year built 1988 Year refurbished N/A Lettable area (sqm) 9,679 Average Floor Plate (sqm) 2,300 Car spaces 529 Acquisition date February 1994 $53.8m Occupancy level 10 WALE Average passing rent (face) NABERS Energy rating NABERS Water rating Value 3.0 years $361/sqm pa gross $4.6m $53.9m Date December 2013 Cap rate 8.25% Discount rate 8.75% $5,564/sqm Major tenants Area % of NLA Expiry Australian Federal Police 9,679sqm 10 June 2017 SYDNEY MELBOURNE BRISBANE PERTH CANBERRA 10

28 28 INVESTA OFFICE FUND PROPERTY PORTFOLIO JUNE 2014 Portfolio overview Brisbane portfolio The Brisbane office market has been impacted significantly over the past 12 months following large scale job cuts from the state government and the resource sector. High quality assets in good locations with efficient floor plates are outperforming secondary assets, which are feeling the impact of vacancy rates above 2. We expect leasing conditions will remain difficult despite an anticipated improvement in demand into BRISBANE 5 BRISBANE PORTFOLIO Creek Street Ann Street Adelaide Street George Street 5 15 Adelaide Street CYCLE 2 CITY EOT FACILITY BUS STATION 5 4 BUS TERMINAL QUEENSLAND PERFORMING ARTS COMPLEX

29 29 Total lettable area 88,764sqm Weighted average lease expiry 4.1yrs Occupancy $476.1m 78% PORTFOLIO OVERVIEW BRISBANE OUTLOOK Forecast return to positive tenant demand By Income 22% 23% Likely stabilisation of incentives in line with improving occupancy 29% Well located assets with efficient floor plates expected to out-perform SYDNEY MELBOURNE BRISBANE PERTH CANBERRA 1 3% 5% 7%

30 30 INVESTA OFFICE FUND PROPERTY PORTFOLIO JUNE Creek Street, Brisbane QLD 140 Creek Street is a 25 level modern A-grade office building located in the heart of Brisbane s corporate landscape. The building has large floor plates of 1,175sqm with good natural light throughout, and benefits from a 5.0-star NABERS Energy rating. 140 Creek Street is currently being transformed through a comprehensive capital works programme that includes refurbishing the ground floor lobby and 9 floors, and upgrading the services and amenities to meet the requirements of modern occupiers. A-grade office Ownership 10 Year built 1995 Year refurbished 2005 & 2014 Lettable area (sqm) 28,162 Average Floor Plate (sqm) 1,175 Car spaces 159 Acquisition date May 1998 $173.0m Occupancy level 61% WALE 4.9 years Average passing rent (face) $673/sqm pa gross $10.9m NABERS Energy rating NABERS Water rating Value $167.0m Date December 2013 Cap rate 7.75% Discount rate 9.25% $5,930/sqm Major tenants Area % of NLA Expiry State of Queensland 8,819sqm 31% June 2016 Centrelink 7,286sqm 26% December 2022 CYCLE 2 CITY EOT FACILITY BUS STATION BUS TERMINAL 39% 33% 27%

31 Ann Street, Brisbane QLD 295 Ann Street is a quality, A-grade office building leased to Queensland Rail until The property was last refurbished in 2010 and has achieved a 5.0-star NABERS energy rating. Conveniently located within easy walking distance to Brisbane GPO, Central Station as well as bus routes in and out of the city, 295 Ann Street is surrounded by extensive amenity including cafes and restaurants. PORTFOLIO OVERVIEW 295 ANN A-grade office Ownership 10 Year built 1974 Year refurbished 2010 Lettable area (sqm) 20,281 Average Floor Plate (sqm) 1,220 Car spaces 85 Acquisition date May 1998 $114.6m Occupancy level 83% WALE Average passing rent (face) NABERS Energy rating 1 NABERS Water rating 1 Value 4.8 years $602/sqm pa gross $6.8m $116.0m Date December 2013 Cap rate 8.0 Discount rate 9.25% $5,720/sqm Major tenants Area % of NLA Expiry Queensland Rail 16,541sqm 82% November SYDNEY MELBOURNE BRISBANE PERTH CANBERRA CYCLE 2 CITY EOT FACILITY BUS STATION 58% BUS TERMINAL 25% 17% 1. NABERS Rating applies to both 295 Ann Street and 232 Adelaide Street 2. Exercised 30 June 2015 break over 4,900sqm

32 32 INVESTA OFFICE FUND PROPERTY PORTFOLIO JUNE Adelaide Street, Brisbane QLD Built in 1937, 232 Adelaide Street is positioned next to ANZAC Square and in close proximity to retail amenities, cafés and restaurants. Offering refurbished office space, this building is conveniently located within easy walking distance to the Brisbane GPO, Central Station and bus routes in and out of the city. B-grade office Ownership 10 Year built 1937 Year refurbished 2005 Lettable area (sqm) 4,459 Average Floor Plate (sqm) 540 Car spaces 16 Acquisition date May 1998 $16.5m Occupancy level 10 WALE 4.3 years Average passing rent (face) $547/sqm pa gross $1.2m NABERS Energy rating 1 NABERS Water rating 1 Value $16.4m Date December 2013 Cap rate 8.5 Discount rate 9.5 $3,678/sqm Major tenants Area % of NLA Expiry ILSC 1,384sqm 31% June 2023 Markfire 394sqm 9% August 2016 Bureau Probert Architects 391sqm 9% July 2016 CYCLE 2 CITY EOT FACILITY BUS STATION BUS TERMINAL 32% 4% 2 23% 16% 5% 1. NABERS Rating applies to both 295 Ann Street and 232 Adelaide Street

33 George Street, Brisbane QLD 239 George Street is prominently located in the heart of the legal and government precincts of Brisbane. In close proximity to major transport and retail hubs, the building offers quality office space with good natural light over 24,000sqm of NLA. It incorporates ground floor retail and 30 levels of office accommodation. PORTFOLIO OVERVIEW B-grade office Ownership 10 Year built 1976 Year refurbished 2006 Lettable area (sqm) 24,315 Average Floor Plate (sqm) 750 Car spaces 21 Acquisition date July 1998 $124.0m Occupancy level 93% WALE 2.8 years Average passing rent (face) $606/sqm pa gross $9.4m NABERS Energy rating 1 NABERS Water rating 1 Value $122.5m Date June 2013 Cap rate 8.5 Discount rate 9.25% $5,038/sqm Major tenants Area % of NLA Expiry The State of Queensland 3,495sqm 14% October 2015 Cullen Services 1,174sqm 5% May 2019 Kalaf 924sqm 4% July 2015 SYDNEY MELBOURNE BRISBANE PERTH CANBERRA CYCLE 2 CITY EOT FACILITY BUS STATION BUS TERMINAL 34% 7% 14% 5% 14% 14% 11% 1. NABERS ratings applies to both 239 George Street and 15 Adelaide Street

34 34 INVESTA OFFICE FUND PROPERTY PORTFOLIO JUNE Adelaide Street, Brisbane QLD 15 Adelaide Street is a quality, 19 level office building located in the Brisbane CBD s legal precinct. The building has approximately 11,600sqm of NLA and benefits from abundant natural light. The recently refurbished ground floor presents a stylish, corporate entrance surrounded by a wealth of amenity including cafés, bars and shopping and is well serviced by public transport. B-grade office Ownership 10 Year built 1982 Year refurbished 2008 Lettable area (sqm) 11,547 Average Floor Plate (sqm) 740 Car spaces 145 Acquisition date July 1998 $48.0m Occupancy level 72% WALE 4.3 years Average passing rent (face) $565/sqm pa gross $3.5m NABERS Energy rating 1 NABERS Water rating 1 Value $48.0m Date June 2014 Cap rate 8.75% Discount rate 9.25% $4,157/sqm Major tenants Area % of NLA Expiry Commonwealth of Australia 2,167sqm 19% March 2019 BP Services 1,298sqm 11% June 2021 CYCLE 2 CITY EOT FACILITY BUS STATION BUS TERMINAL 28% 4% 11% 7% 1% 26% 23% 1. NABERS ratings applies to both 239 George Street and 15 Adelaide Street

35 Address 35 PORTFOLIO OVERVIEW SYDNEY MELBOURNE BRISBANE PERTH CANBERRA View from 15 Adelaide Street, Brisbane

36 36 INVESTA OFFICE FUND PROPERTY PORTFOLIO JUNE 2014 Portfolio overview Perth portfolio Perth has endured a challenging 12 months as the economy re-weights away from mining investment. Sub-lease space spiked early in the year as resources and engineering firms reduced their occupancy requirements, although this trend has abated in recent quarters. New supply additions are expected during 2015, and while much of this space is already pre-committed by tenants, it is likely that short-term the vacancy rate will rise. Further ahead the positive outlook for iron ore and LNG global demand should drive improving demand fundamentals reducing the vacancy rate over medium-term horizon. PERTH 2 PERTH PORTFOLIO 1 66 St George's Terrace Wellington Street 2 1 BARRACK STREET View to Perth City

37 37 Total lettable area 23,413sqm Weighted average lease expiry 3.8yrs Occupancy $169.5m 96% PORTFOLIO OVERVIEW PERTH OUTLOOK Economic growth will remain strong due to surging resource export volumes By Income 22% 2 Expect demand conditions will stabilise over the course of the year 43% Downward pressure on rents to ease SYDNEY MELBOURNE BRISBANE PERTH CANBERRA 4% 2% 8%

38 38 INVESTA OFFICE FUND PROPERTY PORTFOLIO JUNE St George s Terrace, Perth WA Located on the north side of St George s Terrace, this A-grade building was completed in 1990 and boasts a central CBD address between William and Barrack Street. It has 11 levels of attractively sized floor plates and a side core providing an abundance of natural light. The property also includes two retail tenancies, 66 car bays and ample storage. A-grade office Ownership 10 Year built 1990 Year refurbished N/A Lettable area (sqm) 11,440 Average Floor Plate (sqm) 1,000 Car spaces 66 Acquisition date August 2012 $92.0m Occupancy level 92% WALE 3.2 years Average passing rent (face) $664/sqm pa net $7.3m NABERS Energy rating NABERS Water rating Value $89.5m Date June 2013 Cap rate 8.25% Discount rate 9.75% $7,823/sqm Major tenants Area % of NLA Expiry ASIC 2,377sqm 21% June 2015 Suncorp 2,323sqm 2 February 2015 Subsea 7 2,014sqm 18% February 2018 BARRACK STREET 39% 36% 8% 2% 15%

39 Wellington Street, Perth WA Completed in 2009, Wellington Central offers large, efficient floorplates with a central core configuration providing superior accommodation for tenants and secure on-site parking for over 138 vehicles. Wellington Central features 11,629sqm of office accommodation over eight levels and offers the best of green technology within the West Perth commercial precinct. PORTFOLIO OVERVIEW A-grade office Ownership 10 Year built 2009 Year refurbished N/A Lettable area (sqm) 11,973 Average Floor Plate (sqm) 2,250 Car spaces 138 Acquisition date September 2007 $77.5m Occupancy level 10 WALE Average passing rent (face) NABERS Energy rating NABERS Water rating Value 4.7 years $471/sqm pa net $6.0m $77.5m Date June 2013 Cap rate 8.5 Discount rate 10.5 $6,473/sqm Major tenants Area % of NLA Expiry Commonwealth of Australia 11,629sqm 97% April 2019 SYDNEY MELBOURNE BRISBANE PERTH CANBERRA 96% 836 WELLINGTON BARRACK STREET 4%

40 T ST 40 INVESTA OFFICE FUND PROPERTY PORTFOLIO JUNE 2014 Portfolio overview Canberra portfolio New or refurbished assets in Canberra continue to perform relatively well as older B-grade stock struggles to compete. Demand, which is traditionally driven by the Government sector, has been weak, and it may take some time for leasing activity to recover to average levels. Nonetheless, supply under construction is lower than it has been for some time, and therefore any reasonable market recovery will see the vacancy rate begin to trend down over the next few years. CANBERRA 1 Total lettable area 14,132sqm Weighted average lease expiry 11.7yrs Occupancy 95% $79.0m CANBERRA OUTLOOK Government led demand expected to recover during the last half of 2015 Short-term demand expected to remain weak, particularly in the B-grade market Downward pressure on effective rents likely until demand recovers

41 41 Times Square, Mort Street, Canberra ACT Times Square is situated in the heart of the Canberra CBD, adjacent to the main shopping precinct and commercial thoroughfare. The building consists of two levels of underground parking and six levels of office comprising large 2,200sqm floor plates. The office component of the building is leased to Telstra until 2024 after being comprehensively refurbished in PORTFOLIO OVERVIEW RUDD ST BARRY DRV MORT N COOYONG ST VETERAN S PARK BUNDA ST MORT ST MURULLA LANE LONSDALE ST RUGBY LEAGUE PARK A-grade office Ownership 10 Year built 1992 Year refurbished 2013 Lettable area (sqm) 14,132 Average Floor Plate (sqm) 2,200 Car spaces 160 Acquisition date March 2001 $79.0m Occupancy level 95% WALE 11.7 years Average passing rent (face) $385/sqm pa net $2.4m NABERS Energy rating 1 Not rated NABERS Water rating 1 Not rated Value $79.0m Date June 2014 Cap rate 7.0 Discount rate 8.75% $5,590/sqm Major tenants Area % of NLA Expiry Telstra 13,440sqm 95% February % SYDNEY MELBOURNE BRISBANE PERTH CANBERRA MOORE ST BALLUMBIR ST HOBART PL ALINGA ST LONDON CIRCUIT WEST ROW NORTHBOURNE AVE NORTHBOURNE AVE ALINGA ST EAST ROW MORT ST BUS INTERCHANGE CITY WALK PETRIE PLZ PETRIE ST CANBERRA CENTRE BUNDA ST 5% ON 1. Could not be rated due to insufficient occupancy immediately following building refurbishment.

42 42 INVESTA OFFICE FUND PROPERTY PORTFOLIO JUNE 2014 Bastion Tower, Avenue des Artes, Brussels, Belgium Bastion Tower is a landmark property in Brussels, located in the prestigious European quarter with the European Commission and NATO headquarters only a short walk away. The 25 storey, fully refurbished building is one of only five high-rise office towers in Brussels. The building attracts quality tenants including international law firms, financial institutions and EU organisations. A-grade office Ownership 5 Year built 1967 Year refurbished 1997 Lettable area (sqm) 31,682 Average Floor Plate (sqm) 1,230 Car spaces 490 Acquisition date November m Occupancy level 81% WALE 7.1 years Average passing rent (face) 333/sqm pa net 2.3m Value (5 ownership) 57.4m Date June 2014 Cap rate 6.65% Discount rate 8.88% 3,624/sqm Major tenants Area % of NLA Expiry Freshfields 7,627sqm 24% December 2024 Servcorp Brussels 2,580sqm 8% February 2019 Dexia Holding 2,532sqm 8% September % 19% 2% 2% 3% 12%

43 43 Portfolio Overview NSW VIC QLD WA ACT Disclaimer This document has been prepared by Investa Listed Funds Management Limited as responsible entity for the Prime Credit Property Trust and Armstrong Jones Office Fund (Investa). While reasonable care has been taken in the preparation of this document to ensure that the information is accurate and complete, Investa makes no representation or warranty (express or implied) in respect of this document including as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. In preparing this document, Investa may use and rely upon information from sources generally regarded as authoritative and reputable, but the information obtained from these sources may not have been independently verified by Investa. This document has been prepared for the purpose of providing general information (current at the time of publication, unless otherwise indicated) only. The information contained in this document is also based on present circumstances, market conditions and beliefs which may change. It is not intended to provide, and should not be relied upon for investment, financial, accounting, legal or tax advice. To the maximum extent permitted by law, Investa accepts no responsibility or liability whatsoever for any expense, loss or damage arising out of or in any way connected with the use of all or part of this document nor will Investa bear any responsibility or liability as to the fairness, accuracy, adequacy, completeness or correctness of the information in this document or provided in connection with it.

44 If you have any questions about IOF s reporting or questions in relation to your unitholding, please call the unitholder information line on Further information about the Fund can be accessed and downloaded at investa.com.au/iof investa.com.au/iof INVESTA LISTED FUNDS MANAGEMENT LIMITED Level 6, Deutsche Bank Place 126 Phillip Street Sydney NSW 2000 T F ACN AFSL The first choice in Australian Office